Query re CIL liability

[Deejay_2]

I am trying to ensure I have everything covered before submitting our planning application.  We intend to demolish our 1970s bungalow and replace it with a detached house and triple garage with "granny" flat over for me.  The bungalow is owned jointly ie myself and two sons  My older son (son A)  and myself live in the bungalow and my younger son (son B) lives elsewhere. 

Questions:

1     I intended putting my older son and myself on the planning application form - does this bear any relevance to the CIL liability form - ie should we apply in all 3 names as joint owners or doesn't it matter.

2      Because we jointly own the property, do we need to put all 3 names on the CIL Assumption of Liability Form.  I had originally intended just putting Son A and myself on the form as we occupy the bungalow (mainly in case I die during the building process), but now I am thinking we all have to be included on the form as owners.   "The exemption will apply to anybody who is building their own home or has commissioned a home from a contractor, house builder or sub-contractor. Individuals claiming the exemption must own the property and occupy it as their principal residence for a minimum of three years after the work is completed."  Also as can be seen from the quote it appears all three of us will have to occupy the property for 3 years after completion which would mean Son B having to come and live with us as well.  Do you think I have interpreted this correctly.   

3     Although we would like to build the house if we obtain planning permission, should we be unable to raise the necessary funding, would we be able to transfer the CIL exemption if we decided to sell the property before commencing any work.  Also, if the owner just wanted to "modernise" the bungalow and didn't wish to implement the planning approval would the CIL liability just die out.  

4     Say we start the build with the sole intention of not having to re-apply for planning permission after 3 years, and then decide to sell and the new owner wants to carry on with the build, can we transfer the CIL exemption over to the new owner.

 

I am very keen not to make a mistake as regards CIL and realise how important it is to follow due process. I am sorry there are so many questions but I am hoping there is someone knowledgeable in this particular area who may be able to advise me, and maybe others, as the whole CIL thing seems to be very complicated. 

Many thanks.

 

 

[nod]

Firstly it shouldn’t make any difference who’s name is on the application 

The Cil relates to the build

As far as staying in the property for three years after completion very is issued

That relates to the property being sold 

Not one you moving out 

As far as you selling mid build You would have to ask the local Cil But if the buyer intended to make the house there main residence and stay for at least three years after completing There’s no reason why they wouldn’t equal if I qualify for Cil exception 

 

The Cil is probably one of the easiest parts of planning So a call or email would make things clear 

 

 

 

 

[Dave Jones]

cil is supposed to be paid up front before the build starts...

[nod]

13 minutes ago, Dave Jones said:

cil is supposed to be paid up front before the build starts...

Not for most of us self builders 

[Temp]

15 minutes ago, nod said:

As far as staying in the property for three years after completion very is issued

That relates to the property being sold 

Not one you moving out 

 

 

 

Careful because in some places it says..

 

https://www.gov.uk/guidance/community-infrastructure-levy#para082

Individuals benefiting from the exemption must own the property

and occupy it as their principal residence for a minimum of 3 years after the work is completed.

 

The exemption process involves accepting liability for the CIL and then claiming the exemption. I would put just one of your names on the CIL paperwork. Eg The person who is likely to live there the longest. 

 

 

[Temp]

1 hour ago, Deejay_2 said:

3     Although we would like to build the house if we obtain planning permission, should we be unable to raise the necessary funding, would we be able to transfer the CIL exemption if we decided to sell the property before commencing any work.  Also, if the owner just wanted to "modernise" the bungalow and didn't wish to implement the planning approval would the CIL liability just die out.  

4     Say we start the build with the sole intention of not having to re-apply for planning permission after 3 years, and then decide to sell and the new owner wants to carry on with the build, can we transfer the CIL exemption over to the new owner.

 

I suspect some of this is untested in court.

 

3 - You can certainly transfer the cil liability or exemption any time before you claim the exemption. After that I'm not sure. So get finances in place after getting PP and before claiming the exemption and definitly before starting work.

 

4 - No. I believe once you start work you have to finish and live there 3 years or it becomes payable. 

[Temp]

28 minutes ago, Dave Jones said:

cil is supposed to be paid up front before the build starts...

 

Yes either paid or the exemption claimed and accepted before the build starts.

[Temp]

More in the regs here.. not sure it these are the latest version..

 

https://www.legislation.gov.uk/uksi/2010/948/part/4/made?view=plain

 

Transfer of assumed liability

32.—(1) A person who has assumed liability to pay CIL in respect of a chargeable development (P1) may transfer that assumption of liability to another person (P2) by submitting a liability transfer notice to the collecting authority.

(2) A liability transfer notice must—

(a)be submitted in writing on a form published by the Secretary of State (or a form to substantially the same effect); and

(b)include the particulars specified or referred to in the form.

(3) A liability transfer notice must be received by the collecting authority no later than the day on which the final payment of CIL is due in respect of the chargeable development.

(4) On receiving a valid liability transfer notice the collecting authority must send an acknowledgement of its receipt to P1 and P2.

(5) On the day on which the collecting authority receives a valid liability transfer notice, P2—

(a)is deemed to have assumed liability to pay CIL in respect of the chargeable development; and

(b)becomes liable to pay the outstanding amount of CIL payable in respect of the chargeable development.

(6) A liability transfer notice is valid if it complies with the requirements of paragraph (2).

 

 

[Temp]

 

[Deejay_2]

Thank you everyone for responding.  We built a house on the site in 2014 almost the same as the proposed one except new proposal has triple garage with flat above and there was no CIL then.  I've been checking my spreadsheet of costs from that build against current prices and can see the prices have probably doubled.  This is making me wonder whether realistically we can afford it.  If we end up selling said bungalow to purchase say small house/flat for me and house for son to give us separate accomm, I feel we would realise more money if the bungalow has planning permission for new dwelling which is very fashionable around here. Hence the questions.

1     I intended putting my older son and myself on the planning application form - does this bear any relevance to the CIL liability form - ie should we apply in all 3 names as joint owners or doesn't it matter.

Ok - the answer to this question is clear.  Thank you.

 

2      Because we jointly own the property, do we need to put all 3 names on the CIL Assumption of Liability Form.  I had originally intended just putting Son A and myself on the form as we occupy the bungalow (mainly in case I die during the building process), but now I am thinking we all have to be included on the form as owners.   "The exemption will apply to anybody who is building their own home or has commissioned a home from a contractor, house builder or sub-contractor. Individuals claiming the exemption must own the property and occupy it as their principal residence for a minimum of three years after the work is completed."  Also as can be seen from the quote it appears all three of us will have to occupy the property for 3 years after completion which would mean Son B having to come and live with us as well.  Do you think I have interpreted this correctly. 

 Still not sure about this one ie it says "must own the property".  In fact, the 3 of us own one third each so not sure that putting one on the CIL form will be acceptable.  Son A would presumably live there the longest as I have a much shorter use by date.  So, for example, if only his name goes on the Assumed Liability Form (subject to LA confirming this is OK), then will it only be him that will be expected to live there for 3 years, even though he only owns one third. 

 

3     Although we would like to build the house if we obtain planning permission, should we be unable to raise the necessary funding, would we be able to transfer the CIL exemption if we decided to sell the property before commencing any work.  Also, if the owner just wanted to "modernise" the bungalow and didn't wish to implement the planning approval would the CIL liability just die out.  

Form 7 Part 1 Self Build Exemption Claim Form is submitted before any work is started but after Planning Permission has been granted - is this correct - which means we could sell with planning permission before we reach Form 7 Stage, and transfer Acceptance of Liability to new owner.  (We don't want to do this - we had hoped to start work to implement the planning permission and then take our time deciding what to do, and if I die or whatever, my sons could sell the bungalow with planning permission if they wanted to.  Really just taking advantage of my willingness to take on the task of getting the plng approval - neither son would want to do this whereas it is a good hobby for my retirement.  

 

4     Say we start the build with the sole intention of not having to re-apply for planning permission after 3 years, and then decide to sell and the new owner wants to carry on with the build, can we transfer the CIL exemption over to the new owner.

So I need to ask local CIL where we stand with this.  If person purchasing is building for own residential use they may be allowed to somehow take on the exemption either by transfer or putting in their own application.  I'll try and get clarification on this and post what they say.  

 

Thank you for the input which has been very helpful and which has made things much clearer for me although probably more confusing for everyone else, which I'm apt to do.    

[Haylingbilly]

I have found the CIL officer at our local council incredibly helpful so would ask them the questions. Mine put the responses in writing without being asked which was great.